Mumbai

A day after introducing a one-time restructuring scheme for MSME borrowers with individual loans below Rs 25 crore, the Reserve Bank of India (RBI) on Wednesday set up an expert committee, to propose long-term solutions for the economic and financial sustainability of the MSME sector.

Shares of 11 public sector banks, put under the prompt corrective action (PCA) framework by the Reserve Bank of India, witnessed 1-3.5 per cent fall on Wednesday on account of higher provisioning for NPAs after RBI issued a circular on restructuring of MSME loans up to Rs 25 crore.

The selling pressure in the broader market on account of global weakness too added to the fall, said analysts.

The National Company Law Tribunal (NCLT) on Tuesday allowed the corporate affairs ministry to reopen the books of the crippled IL&FS Group and its subsidiaries for the past five years under Section 130 of the Companies Act, to ascertain financial mismanagement.

For the first time, the government on December 21, 2018, had invoked the powers under Section 130 of the new Companies Act of 2013 to reopen the books of a company.

Stock broker association’s Budget 2019 wish list includes rationalisation of Securities Transaction Tax on exercise of options, exemption of long term capital gain on securities held for three years, exemption of interest earned by stock broker on funding done to its client from GST, commodities transaction tax(CTT) among others.

There has been a four-fold increase in the quantum of money swindled by fraudsters from banks in the last four years, the Reserve Bank said on Monday.

Looking at the progress in the first half of the ongoing fiscal, the pace of frauds seems to be continuing on the upward trajectory, the RBI data said.

In the financial stability report, the RBI said 5,917 frauds involving an amount of Rs 41,167 crore were reported by the banks in fiscal year 2017-18, as against 4,306 frauds entailing an amount of Rs 10,170 crore in FY14.

Banks lending to and borrowing from all other entities in the financial system stood at 46.5 per cent of total lending and borrowings in the financial system, as on September, RBI report showed.

Financial institutions establish links with other financial institutions for efficiency gains and risk diversification, but these same links lead to risk transmission in case of a crisis, RBI said in its Financial Stability Report released on Monday.

Despite higher housing credit growth and better bank lending rates, house prices in the country have been cooling in the last five years, a Reserve Bank of India (RBI) report said.

According to the Financial Stability Report released by the RBI on Monday, the all-India housing price index reduced to 5.3 per cent during April-June, 2018, while housing credit also declined to 15.8 per cent as compared to Q1 FY2015, which stood at around 16 per cent and close to 17 per cent, respectively.

The country’s external debt fell by $9.3 billion, or 3.6 per cent, to $510.4 billion during the six-month period ended September, due to a decrease in commercial borrowings, non-resident Indian (NRI) deposits and valuation effect.

“At end-September 2018, India's external debt witnessed a decline of 3.6 per cent over its level at end-March 2018, on account of a decrease in commercial borrowings and NRI deposits.

The balance sheet size of non-bank financial companies (NBFCs) grew by 17.2 per cent to Rs 26 trillion in September from Rs 22.2 lakh crore in September 2017, a Reserve Bank of India (RBI) report showed.

Net profit of sector increased by 16.2 per cent during the half year ended September 2018 as compared to 22.9 per cent during the year ended March 2018, RBI said in the Financial Stability Report released on Monday.